What is “asset recovery” in a Chapter 11 bankruptcy?

Asset recovery in a Chapter 11 bankruptcy is a process that helps the debtor (borrower) to reorganize their debt. This type of bankruptcy helps the debtor regain control of their finances and restructure their debt. It also gives creditors (lenders) the opportunity to obtain a higher level of repayment of the debt. Under Chapter 11 bankruptcy law in Washington, the debtor files a petition with the court. This petition is analyzed and approved by a judge to decide if reorganization is suitable for the debtor. After the filing is accepted, a plan is created by the debtor to reorganize their debt. This plan is then submitted to the court and creditors, and then voted on by the creditors to be either accepted or rejected. Once the plan is accepted, the court gives the debtor the ability to use their assets to pay off their debt. This is called asset recovery. The process involves the debtor selling off assets to recover the money owed to creditors. This means that creditors will be able to obtain some of their money back even if the debtor is unable to pay back their full debt load. Asset recovery in a Chapter 11 bankruptcy is a great way of getting the debtor back on track financially. It allows the debtor to reorganize their debt and move towards a more manageable and healthy financial situation. With the help of the court, creditors, and debtor, asset recovery can be achieved so that creditors can receive some of their money back.

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What is “asset recovery” in a Chapter 11 bankruptcy?

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